Licensing: It will benefit your brand.
People have their own understanding of what licensing is when it comes to business. Most think that it only deals with having the proper business license to operate a particular business. To an extent, you'd be right.
But there's another meaning behind licensing. It's the contractual method by which you allow someone to utilize your intellectual property (I.P.) for a certain amount of time and for a certain amount of consideration.
When licensing your IP, you must be vigilant by ensuring that they are not using your IP in ways that were not in agreement, that they have not allowed a third party to use the agreement without a prior written agreement granting permission, that they will duly provide consideration at the time stated in the agreement, among other things. These are just a few examples of ensuring that your IP remains solely your property.
Consideration is simply something of value that another party gives the other in exchange for the value received through an agreement. For example, if you are allowing someone to use your IP through a licensing agreement, then the other party may provide a monetary value in exchange.
There are benefits to licensing such as brand visibility, creating allies around your brand, you receive some form of compensation in exchange for another using the IP in a licensing agreement.
Licensing your IP may seem like a scary thing and it is, but it's also beneficial. You must ensure that you put measures in place to continue to protect your IP after a licensing agreement is effectuated. We know that this can be a little overwhelming and that's why here at the SL DeBarros Law Firm, LLC, we're here to help you with your business needs.
This article is a service of SL DeBarros Law Firm, LLC. SLD offers a wide array of business legal services and can help you make the wisest business choices throughout life and in the event of your death. SLD also offer a Business Protection Start-Up Session or a Business Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call SLD today to schedule.